SPECIALIST

Property Finance

Best Rates & Fast Completions

Open 7 days a week

Bridging Loans Available At 0.55%

 

  • Master Broker with Market-Leading Rates
  • FCA-regulated 667602 and ICO (Data Protection) ZA115985
  • Access to numerous “special” products
  • Whole-market offering
  • Many years of relevant senior experience
  • Products covering all scenarios
  • Business/commercial bridging finance
  • Extended opening hours, 7 days per week
  • Investment development finance
  • Residential development finance

 

The 4-step process of a bridging finance loan:

Indicative quotation: During an initial phone consultation, we will review your particular requirements, personal circumstances, and available solutions, and we will give free and unbiased advice to each of our prospective customers. We will email you the quotation, and if you are satisfied with the figures, we will proceed to step 2.

DIP approval: It usually takes an hour or two to obtain a decision in principle; once approved, we will send you a detailed quotation and a copy of the terms.

Property valuation and application process: A valuation is instructed (if applicable), and your dedicated processor will obtain the necessary information from you in order to submit the application to the lender for underwriter review. Once approved by the underwriter, you will receive a full offer.

Completion: Also known as drawdown, once the loan has been completed, the funds are released.

Bridging loan uses:

  • Property auction finance
  • Buying a property and avoiding chains
  • Bridging loans for property development
  • Financing a self-build project
  • Bridging loans for land purchases
  • Probate and inheritance tax
  • Buying a residential property
  • Property refurbishment and renovation
  • Bridging finance for commercial use
  • Avoiding house repossession

 

Advantages of a bridging finance loan:

Quick to arrange

Acquiring a significant sum of money can be a lengthy process, particularly when it involves business loans or mortgages for properties intended for rental, residential, or commercial purposes. However, when there’s an urgent need for funds, a bridging loan often proves to be the most suitable choice. If you possess sufficient equity in the property or properties being used as collateral, the funds you require can be deposited into your account within a mere 48 hours.

Very flexible

Unlike most other financial providers, bridging lenders are very flexible in terms of accommodating the needs of their clients. They are not overly concerned with a customer’s credit rating, whether or not they are self-employed or have a monthly income. Moreover, they are typically only interested in a viable exit strategy and the security you are offering. As long as you can pay the money back, even if things go wrong, your chances of approval for a bridging finance loan are excellent.

Can be secured against any property type

A bridging lender will consider using any type of property or real estate as security, including residential property such as a house or flat, commercial properties such as offices, warehouse facilities, development land or building plots, and even farms or sports complexes. In addition, a bridging loan provider will also consider both freehold and leasehold property, even if the lease only has a short time remaining.

Loan repayments can be deferred

When taking out a bridging loan, people often wonder how soon or regular the repayments must be on your loan amount. Typically, the total loan is only to be returned at the conclusion of the agreement on the date agreed upon with the lender when you finalise your application. There are no payments due until this date, offering you peace of mind and extra money in the short term.

Properties in a state of neglect

This type of finance can also be secured against real estate that is in urgent need of repair or restoration. If a property is derelict or in poor condition, then most mortgage providers will deem it completely unacceptable for the purposes of securing a loan. This is another advantage when compared with other types of finance.

Unusual construction or non-standard properties

The vast majority of mortgage lenders will only consider offering finance secured against properties that are categorised as standard construction. Non-standard or unusual construction properties include buildings constructed from materials such as concrete, wood, corrugated iron, or steel frames, and these are often exceptionally difficult to obtain a mortgage on as they are considered less valuable than brick buildings with tiled roofs.

Multiple properties as security

Finance can easily be raised using two or more properties as security, either on a first- or second-charge basis or quite possibly using a combination of charges. Provided there is equity in the additional properties, a borrower can use that money to raise the funds required for another purchase or property development project.

Finance for business owners

Business funding can help with short-term and long-term cash flow problems, as having additional finance can make the daily running of your business easier to manage. Business funding can be used for a variety of purposes, such as helping to fund purchase orders or pay suppliers, paying off company tax and VAT, and purchasing new premises. The funds can be secured against the commercial premises or secured against future income or sales for repayment.

Bridging Finance Loan: Regulated vs. Non-Regulated

A bridge loan can be a uniquely flexible and cost-effective borrowing solution to cover urgent costs and fund time-critical investment opportunities. Loans can be issued for up to around 85% LTV, secured against almost any type of property and used for most legal purposes.

A rapid bridging loan can be provided in as little as a few working days if all of the paperwork is in order. It has a maximum period of 12 to 18 months and is normally paid at a monthly rate of 0.5% or less.

Agreements are tailored to the borrower’s specific needs, with a wide choice of regulated and non-regulated products available.

Your broker will assist you in determining which of the two best meets your needs, as well as negotiate on your behalf to guarantee you obtain an amazing bargain from a top-rated bridge loan lender.

Regulated Bridging Finance

A regulated bridging loan is issued when the applicant’s security for the facility is either currently used or intended to be used as a residential home by the borrower or a member of their family. These can be used for a majority of legal purposes, though they cannot be used as a second-charge loan with commercial applications in mind.

This is a useful facility for eligible borrowers looking to:

  • Buy a home or commercial property at auction.
  • Extend their buy-to-let property portfolio.
  • Conduct renovations or improvements on a property they own.
  • Raise capital for business purposes.
  • Escape the property chain when relocating.

Typical features of a regulated bridging loan include:

  • Available from £50,000 with no upper limit.
  • Can be secured against any type of property.
  • Fast completions (often a few working days).
  • Flexible loan terms of 1 to 18 months.
  • Competitive monthly interest and low borrowing costs.

Non-Regulated Bridging Finance

Non-regulated bridging finance is issued when the security for the loan is not a property that the borrower or a member of their family resides in or intends to move into as their main home.

Non-regulated bridge loans can be used for almost any legal purpose and are not subject to the same restrictions as second-charge loans used for business or commercial applications.

This makes this kind of financing a useful option for commercial customers, business borrowers, and established investors who may be looking to expand their property portfolio.

The basic features are similar to those of regulated bridging finance, though often with greater flexibility regarding the types of assets that can be used as security for the loan.